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US Privacy Update : Where Things Stand at the Start of Q2 2025 Paul Hastings LLP

The Rise of State Privacy Laws

The proliferation of state privacy laws in the United States is a significant development in the country’s data protection landscape. Since the California Consumer Privacy Protection Act (CCPA) was passed in 2018, more than two dozen states have followed suit, with many more in the process of drafting their own legislation.

  • *Data subject rights*: Many state laws grant individuals the right to access, delete, and opt-out of the sale of their personal data.
  • *Data broker regulations*: Some states have introduced regulations to control the activities of data brokers, which collect and sell personal data without users’ consent.
  • *Data security requirements*: State laws often require companies to implement robust data security measures to protect sensitive information.
  • *Enforcement mechanisms*: State agencies are empowered to investigate and enforce compliance with state privacy laws.
    The Impact of State Privacy Laws on Businesses

    • State privacy laws have significant implications for businesses, particularly those that operate across state lines. Companies must now navigate a complex web of regulations, which can be time-consuming and costly to comply with. • *Compliance challenges*: Businesses must ensure that their data collection, storage, and processing practices comply with the laws of multiple states. • *Data protection costs*: Companies may incur significant costs to implement and maintain data security measures, as well as to train employees on data protection best practices.

    Key Provisions of the Kids Online Safety Act

    The Kids Online Safety Act (KOSA) is designed to protect minors from online harm by implementing several key provisions. These provisions include:

  • Requiring online platforms to implement age verification measures to ensure that minors are not accessing adult content.
  • Mandating the removal of harmful or explicit content from platforms.
  • Requiring online platforms to provide parents with tools to monitor their children’s online activities.
  • Establishing a national database to track and report online child exploitation.
    Impact on Online Platforms

    • The KOSA has significant implications for online platforms, including social media companies, online gaming platforms, and streaming services. These platforms will be required to implement age verification measures, remove harmful content, and provide parents with tools to monitor their children’s online activities.

    KOSA: Protecting Minors in the Digital Age

    KOSA, or the Kids Online Safety Act, is a proposed legislation aimed at safeguarding minors from the potential harms of online platforms.

    KOSA also provides resources and support for parents and educators to help them navigate the social media landscape.

  • Risk Reporting: KOSA requires platforms to submit regular reports on risks to minors, including online harassment, cyberbullying, and exposure to explicit content.
  • Data Access: KOSA grants independent researchers access to platform data to study the effects of social media on children’s well-being, providing valuable insights into the impact of social media on young minds.
  • Advertising Restrictions: KOSA bans targeted advertising to users under 16, reducing the likelihood of minors being exposed to inappropriate content.
  • Parental Support: KOSA provides resources and support for parents and educators to help them navigate the complex social media landscape, empowering them to make informed decisions about their children’s online activities.
    How KOSA Works

    • KOSA operates through a multi-faceted approach, involving both regulatory measures and industry partnerships.

    These states have taken a proactive approach to protecting consumer privacy, and their legislation has set a precedent for other states to follow.

    Several organizations have been pushing for comprehensive data privacy laws in recent years. These organizations include the American Civil Liberties Union (ACLU), the Electronic Frontier Foundation (EFF), and the Center for Democracy and Technology. They argue that current data protection laws are inadequate and that comprehensive data privacy laws are necessary to protect consumers. The U.S. Congress has not passed any comprehensive federal data privacy law yet, but there are ongoing discussions and debates about the possibility of such a law.

    Key Provisions of the Bill

  • The bill would require online platforms and app stores to implement age verification systems to ensure that minors are not accessing digital services without parental consent.
  • The bill would also require that sensitive data only be collected if strictly necessary for providing a service.
  • The bill would permit a private right of action, allowing minors to sue online platforms and app stores for violating the bill’s provisions.
    Focus on Protecting Children’s Data

    • The proposed bill is particularly focused on protecting children’s data from social media companies. Many states are introducing bills that model KOSA, which stands for the Kids Online Safety Act. This act aims to protect children’s online safety and privacy by regulating online platforms and app stores.

    The Need for Biometric Privacy Laws

    The increasing use of biometric technologies has led to concerns about the collection, storage, and use of sensitive personal data. Biometric data, such as fingerprints, facial recognition, and iris scans, is unique to each individual and can be used to identify them.

    The Need for Health Data Privacy Laws

    The increasing demand for health data has led to concerns about the misuse of sensitive medical information. With the rise of telemedicine and electronic health records, the amount of health data being collected and shared has skyrocketed.

    Montana’s Digital Health Initiative

    The state of Montana is taking a proactive approach to regulating the digital health landscape, with a focus on protecting the confidentiality of sensitive patient information. This initiative aims to establish clear standards for mental health digital services, ensuring that patients’ personal data remains secure and private.

  • Confidentiality standards for mental health digital services
  • New rules for mobile health apps
  • Telemedicine platforms
  • Online health data storage

    • The initiative is designed to address the growing concern of data breaches and cyber attacks in the digital health sector.

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